What is Correction?

A correction, in a stock trading and crypto investing context, is an occurrence that signifies that the market, or a specific asset has just had a large drop in price from a recently higher price. The process usually results in the price returning to a level more established over the long term. Corrections are often followed by a recovery in price and a continued uptrend, but can sometimes indicate a prolonged long-term market downturn called a bear market.